In a surprise announcement, Microsoft has partnered with major bookseller Barnes & Noble, forming a new venture that will operate to “accelerate the transition to e-reading, which is revolutionizing the way people consume, create, share and enjoy digital content.”

Barnes & Noble has formed a new subsidiary, of which it will own 82.4%, pushing e-reading technologies including via its Nook Digital and College Businesses.

As part of the deal, Microsoft has invested $300 million into ‘Newco’, a temporary name for the company that Barnes & Noble has yet to agree. Its 17.6% equity stake comes at a post-money valuation of $1.7 billion.